Exclusive Interview | Bo Shijiu: Starting the “Second Rise” on the Changjiu Three Business Sector “Troika” (Part 2)
Dec 4, 2023, 14:17 p.m. EDT
2
Accelerate the expansion of international markets
Helping Domestic Automobiles “Go Global”
This year marks the 10th anniversary of the “One Belt, One Road” initiative. Changjiu Logistics has consistently led the automotive logistics industry in countries along this initiative. With our unmatched expertise, we have played a pivotal role in helping Chinese automotive brands expand globally and facilitate the import of international brands.
The international block train(Harbin-Zeebrugge) arrives in Belgium in 2017
“Changjiu Logistics has been proactively assessing customer preferences and driving advancements in serving Chinese auto brands going global and facilitating international brand imports.” Bo Shijiu cited the debut of the Harbin-European liner, the layout of international Ro-Ro ships, the cross-border car carrier wagon program, and other innovations, all of which are important expansions made by Changjiu Logistics based on customers’ demands and business needs to satisfy the different needs of customers in a timely and efficient manner through a richer range of logistics solutions.
2023 Changjiu Logistics “Jiuyang Fortune” North America Service in Mexico
There has been a significant increase in the export demand for new energy vehicles, along with the remarkable expansion of independent brands overseas. This demand extends beyond traditional fuel vehicles, with a growing logistics need for KD parts exports and other related activities stemming from the establishment of overseas factories. Additionally, the new energy industry chain is rapidly expanding its presence in Europe and other regions, where major battery factories and raw material factories are gathering. As a result, there is a considerable demand for cross-border logistics in the new energy sector.Customers today are mainly worried about international logistics delivery time, alternative routing solutions, and supply chain resilience due to geopolitical issues and other factors. These are the areas where Changjiu Logistics excels.
Taking Ro-Ro business as an example, in 2020, Changjiu Logistics observed that the Ro-Ro market had entered the low point of the Ro-Ro shipping market cycle. At the same time, many partners are also planning to increase their efforts to expand overseas markets. Therefore, after in-depth research, Bo Shijiu decided to lay out the Ro-Ro business in advance and purchased the ocean-going Ro-Ro ship “Jiuyang Fortune” that year.
The photo of Changjiu Logistics “Jiuyang Fortune” Ro-Ro Ship
“The Jiuyang Fortune is the first ocean-going Ro-Ro ship invested by Changjiu Logistics, which is of strategic significance for our company’s international logistics business segment and is a milestone for the opening of Changjiu Logistics’ international Ro-Ro shipping.” Bo Shijiu further introduced that in the past few years, we have also been actively acquiring space resources from our partners, seizing the opportunity of the outbreak of the export of Chinese-branded cars in the past two years.
This year, the export volume of Chinese brand cars broke through a new high again, with more than 400,000 cars exported in a consecutive month. Changjiu Logistics once again expanded its international shipping capacity according to its business needs and purchased a 7,000-car Ro-Ro ship, which significantly increased its own capacity. Expanding on our previous achievements, our company will remain committed to partnering with other entities in order to expand our customer base and further promote the success of domestic vehicles on a global scale.
Changjiu Logistics is committed to the development of a comprehensive international logistics intermodal transport system. This includes enhancing the infrastructure for maritime, railway, cross-border highway, and international air transport, ensuring seamless connectivity and efficiency. By expanding our capabilities in these areas, we aim to provide a truly holistic solution for our clients’ logistics needs on a global scale.
Chnagjiu Logistics Finished Vehicle Yard in Chengdu—International Business Segment
In terms of cross-border highways, Changjiu Logistics will deepen the use of the logistics and transport resources of Adampol S.A., a subsidiary of Changjiu Logistics, in Europe and the Far East and give full play to its geographic location advantage of radiating the European market so as to expand the local distribution and cross-border transport services in the European region. In addition, the company is also expanding its business in Central Asia. “Not long ago, Changjiu Logistics acquired a cross-border highway order for SAIC-GM-Wuling’s export to Uzbekistan. “The company plans to support the high-quality development of the ‘Belt and Road’ in the next decade, responding to the national call and tapping into the great potential of the Central Asian market.”Bo Shijiu said.
Changjiu Logistics Successfully Entered Uzbekistan Market in 2023
(Source:China Securities Journal)
In terms of airfreight, Changjiu Logistics has recently officially become a member of the International Air Transport Association (IATA). “After obtaining the IATA qualification, we can co-operate directly with airlines.” Bo Shijiu said that this is an affirmation of Changjiu Logistics’ airfreight service capability and the company’s longstanding and continuous efforts, and that Changjiu Logistics will work hand in hand with its customers.
Changjiu Logistics officially became a member of IATA International Air Transport Association
3
Focus on New Energy Business
Creating the “second growth curve”
From the domestic automotive logistics market pattern, the leading enterprises and the similarity among automobile manufacturers in the market emphasize the strong dependence of automotive logistics on these upstream manufacturers. Consequently, automotive logistics managers are faced with the challenge of devising strategies to stand out in the stock market.
The Ministry of Industry and Information Technology, along with eight other departments, has recently released a notice regarding the pilot work of the comprehensive electrification of public sector vehicles. This initiative aims to expedite the adoption of electric vehicles in the public sector, thereby providing a significant impetus for the rapid growth of new energy vehicles. Additionally, this effort, coupled with the bolstering of consumer demand, will propel the development of the electric vehicle industry even further.
The exponential growth of new energy vehicles will greatly boost the advancement of the new energy vehicle industry chain in the aftermarket. According to Bo Shijiu, the distinct characteristics of new energy vehicle power batteries will trigger a “retirement wave” within the next two to three years. If these retired batteries are not handled properly, it will not only result in the squandering of valuable resources but also contribute to environmental pollution and various other concerns.
Changjiu Logistics 2023: New Energy Strategy Launch
How to properly deal with retired power batteries is not only an industrial and technical issue but also a major social issue that, in the future, will also give rise to a huge volume of the market. “Whether from the perspective of the company’s development or as a listed company to assume social responsibility, the power battery recycling cut into the new energy market is the optimal choice.” Bo Shijiu firmly believes that in this new track of new energy business, Changjiu Logistics will draw its own “second growth curve.”
In addition, Bo Shijiu predicted that with the rapid development of technology, the range of new energy vehicles will continue to increase, and the popularity of supercharging and fast charging will be a general trend, which will impose a great burden on the power grid. After sorting out and researching, Changjiu Logistics decided to launch in-depth cooperation with LYNKVERTX (www.linkutec.com) in the field of V2G (vehicle to grid). Specifically, Changjiu Logistics will take advantage of the group’s 4S dealership store resources to participate in the distributed energy storage segment with the C-suite’s offline outlets and big data system. While expanding the company’s business, this initiative is also bound to be able to contribute to the construction of the country’s new power grid.
However, it is worth noting that the power battery recycling industry is savagely expanding at the same time due to the lack of relevant legal norms caused by a number of hidden problems that are also gradually exposed. For example, “small workshops” have become one of the main recycling channels due to their low cost, but there is no guarantee for safety and environmental protection, which has become a new social problem.
“As a listed company that actively undertakes social responsibility, Longevity Logistics also hopes to promote the high-quality development of the industry and subsequently expects the relevant departments to continue to promote the introduction of more management methods and related rules, leading the industry towards healthy, standardized, and intensive development.” According to Bo Shijiu, based on the large amount of practical experience accumulated in power battery recycling and reverse logistics, Changjiu Logistics is well aware of the industry’s pain points. Therefore, our company participated in the preparation of the “Requirements for Logistics Traceability Information Management of Used Power Storage Batteries for New Energy Vehicles,” which has already been enacted, in the hope of enhancing the level of logistics traceability information management of used power storage batteries in China, ensuring that these batteries can be recycled and processed safely and effectively, and boosting the development of the industry in a standardised manner.